What is the Home Depot Business Credit Card?
Home Depot offers business accounts designed to meet the needs of small business owners, contractors, and other professionals. A Home Depot business account is a type of credit account offered exclusively to businesses. The Home Depot Business Credit Card has several account options, each offering unique features that provide flexibility and rewards for business purchases.
Authorized users can be given buyer IDs, enabling employees to charge on your account. These accounts include the Commercial Account Card, the Commercial Revolving Charge Card, and the Pro Xtra Credit Card.
Commercial Account Card
The Commercial Account Card is the basic version of the Home Depot Business Credit Card. It offers a straightforward credit line for purchases at Home Depot. With this card, businesses can access special financing offers, like net 30 terms, and manage their accounts online, providing easy access to account details and payment management.
Commercial Revolving Charge Card
The Commercial Revolving Charge Card functions similarly to a standard credit card, with a revolving line of credit that can be used repeatedly as payments are made. It offers greater flexibility than the Commercial Account Card, allowing businesses to carry balances and make larger purchases over time. Additionally, businesses with a revolving charge card may receive benefits like special discounts on certain items. The Commercial Revolving Charge card allows for either low monthly payments or pay-in-full options.
Pro Xtra Credit Card
The Pro Xtra Credit Card is a new iteration of the Commercial Revolving Charge card. It’s designed for professional contractors and businesses that frequently purchase tools and materials. This card provides more advanced benefits, such as enhanced rewards and discounts on purchases. It links to the Pro Xtra loyalty program, allowing cardholders to earn rewards faster and access exclusive offers and discounts.
Upon approval, Pro Xtra members can receive an offer to save up to $100 off their next purchase. Pro Xtra allows members to earn perks four times faster on card purchases. Pro Xtra offers members-only benefits like volume pricing and exclusive product offers.
All Home Depot business credit cards report account activity to Dun & Bradstreet, Experian, and Equifax. This helps your business to easily build credit over time since responsible use of the card can help strengthen your credit profile.
How can I use a Home Depot Business Card to Build Business Credit?
To build business credit, you need to establish tradelines with creditors that report to the business credit bureaus. Using the Home Depot Business Credit Card to build business credit requires responsible use and management.
First and foremost, it’s essential to make on-time payments every month. Timely payments can help establish a positive credit history and improve your credit score, which may increase your credit limit over time. Take advantage of the online account management tools to ensure timely payments. Home Depot reports on-time payments to all three major business credit bureaus.
Regularly monitoring your credit report is also crucial, as errors or inaccuracies can hurt your credit score. Disputing these errors promptly can help maintain an accurate and positive credit history. As you continue to use the card responsibly and make on-time payments, your business credit will improve, and you’ll be in a better position to secure additional financing or lines of credit from other lenders.
What are the qualifications for a Home Depot Business Account?
To qualify for a Home Depot Business Credit Card, you’ll need to log certain business information and offer a personal guarantee to back your account. In addition, Home Depot typically requires a credit score of at least 620 or higher. A fair to good credit history—either personal or business—will also be necessary to be approved for a credit account.
Applicants must also provide a DUNS number (a unique identifier for their business) and other relevant business details. This information helps Home Depot assess its financial standing and ability to handle extended credit.
How do I apply for the Home Depot Business Credit Card?
To apply for a Home Depot Business Credit Card, follow these steps:
Step 1 – Gather Your Information
Ensure you have all the necessary business information on hand, including your DUNS number, business address, and personal guarantee details. This info is required to start the process.
Step 2 – Visit the Home Depot Website
Go to the Home Depot website and navigate to the business credit section to find options for applying for the business credit card.
Step 3 – Fill Out the Application
Complete the online application form, providing all requested business details and credit history details.
Step 4 – Submit Your Application
Once you’ve filled out the application, submit it for review. Home Depot will assess your creditworthiness and determine whether you qualify for the business card.
Step 5 – Wait for Approval
After you submit your application, you will receive an email with the outcome. If approved, you can use your card to make purchases at Home Depot.
What are the benefits of Home Depot Business Credit?
The Home Depot Business Credit Card offers several advantages, making it an appealing option for small businesses. One significant benefit is the ability to earn rewards and discounts on purchases. Cardholders can also receive a 2% Early Pay Discount when invoices are paid online within 20 days, helping businesses save money. Using your Home Depot business account responsibly can help you qualify for larger credit lines as your business grows. Both the Commercial Account and Commercial Revolving Account report to major business credit bureaus.
Home Depot offers flexible billing preferences, including options for net 30 or 60 terms, which can ease cash flow management. By linking your card to the Pro Xtra loyalty program, you can also earn Pro Xtra Perks faster, which can be redeemed for various rewards and discounts.
What are the drawbacks of Home Depot Business Credit?
While there are many benefits to using the Home Depot Business Credit Card, there are some downsides to consider. One potential drawback is that it can be difficult to manage the card if payments are not updated. Late payments can negatively impact your business credit, so it’s essential to maintain a regular payment schedule.
Additionally, the Home Depot Business Credit Card can only be used at Home Depot stores or on its website, limiting its use for businesses that need a more versatile credit option for various expenses.
Home Depot Business Credit Card Pros & Cons
Pros:
- Earn rewards and discounts on purchases.
- 2% Early Pay Discount for online payments.
- Flexible billing preferences (net 30 or net 60).
- Pro Xtra Perks for quicker rewards on card purchases.
- Exclusive offers and discounts on Home Depot products.
Cons:
- Limited to purchases at Home Depot.
- Requires on-time payments to avoid negative credit impact.
- Limited to businesses with fair to good credit.
Frequently Asked Questions
Here are the most common questions about the Home Depot business credit card.
What types of enterprises would benefit from the Home Depot Business Card?
Deciding if the Home Depot Business Credit Card fits your business depends on your spending habits and operational needs. For contractors and builders who rely heavily on Home Depot for bulk materials, the card offers rewards and discounts that can add up quickly. Home improvement professionals, like electricians and plumbers, may find value in flexible payment terms and an extended return window, especially when juggling multiple projects.
Small businesses that frequently purchase tools, building materials, or other home improvement products are the best candidates for the Home Depot Business Credit Card. Contractors, renovators, and repair businesses can benefit from the card’s rewards, discounts, and flexible payment terms. Businesses that need regular access to these types of products while building business credit will find this card particularly useful.
Does Home Depot offer a Consumer Credit Card?
Yes, Home Depot offers a consumer credit card, but it differs from the business credit card. The Home Depot Consumer Credit Card is intended for individual use, while the business card is designed for companies. The business card provides higher credit limits, rewards tailored to business purchases, and additional benefits like Pro Xtra Perks.
What is the difference between the Home Depot Net 30 Account & Revolving Credit?
The Net 30 Account requires businesses to pay the full balance within 30 days, while the Revolving Credit account allows businesses to carry a balance from month to month, with interest applied to any remaining balance.
What are my alternatives to the Home Depot Business Card?
Alternatives to the Home Depot Business Credit Card include cards like the Amazon Business Credit Card, the Lowe’s Business Credit Card, and the U.S. Bank Business Credit Card. These options offer similar benefits and are widely accepted at various retailers, offering more flexibility for business owners.
Small Business Loans
Alternatively, you may be interested in one of these small business loans:
- Business line of credit.
- Business loans for women.
- Business term loans.
- Equipment financing.
- Invoice factoring.
- Merchant cash advance.
- Revenue-based loan.
- SBA loans.
- Working capital loans.
- ERTC advance.
Home Depot Business Credit Card & Building Business Credit – Final Thoughts
The Home Depot Business Credit Card is an excellent option for small businesses that regularly purchase supplies from Home Depot. It offers flexible billing options, rewards, and the ability to build business credit, making it a valuable tool for managing purchases and improving credit profiles.
If you’re looking to establish or build business credit while benefiting from discounts and rewards at Home Depot, this card could be a great option. However, make sure to weigh it against other business credit card options to choose the best fit for your company. Businesses should consider its limitations, such as restricted use and the need for timely payments, to ensure that it fits their needs.
Contact us if you have more questions about business credit cards or if you want to apply for a small business loan. Our alternative financing experts can help you find the best funding options for your business needs.
